Legal issues and news

The U.S. Treasury Department defeated a blue-state challenge to a rule that exempts buyers of high-interest loans from state interest rate caps.

Ilya Lichtenstein and his wife, Heather Morgan, were arrested for allegedly masterminding the 2016 scheme. They are scheduled to appear at federal court in Manhattan Tuesday afternoon.

R. David Yost and his soon-to-be-former son-in-law are slugging it out in court over allegations of tax evasion.

Stephen Calk had argued against incarceration, while prosecutors asked for 51 to 63 months behind bars. The ousted bank CEO was convicted of approving $16 million of loans in exchange for Paul Manafort’s help in landing a job in the Trump administration.

The U.S. Treasury Department is looking more closely at potential money laundering and the financing of terrorism through trading high-value art.

The wirehouse and its attorney “manipulated the arbitrator selection process” and “introduced perjured testimony,” according to the ruling.

A Citigroup employee says she provided U.S. regulators with information that led to the bank's paying a $400 million fine. Now, she wants the judge to award her a share of the penalty.

The CEO of Hong Kong's securities regulator said the bank's failures "exposed a culture that encouraged chasing revenue at the expense of basic standards of honesty."

A proposal by the Financial Crimes Enforcement Network would create a pilot program allowing banks to do something they've long wanted: share suspicious activity reports with their own units in other countries. But many banks may take a pass if the agency doesn't ease the compliance requirements, experts say.

Tesla countersued JPMorgan Chase over a suit the bank filed last year seeking a $162 million payment related to a series of stock warrant transactions.

The Conference of State Bank Supervisors abandoned a lawsuit against the Office of the Comptroller of the Currency that had challenged the San Francisco fintech's effort to become a national bank without deposit insurance. The company recently amended its application to drop that controversial element.

Under an agreement with 40 state attorneys general, the student lender and servicer agreed to cancel debt for over 66,000 borrowers and pay restitution to another 350,000 borrowers placed in certain types of forbearance.

UniCC is the the largest dark web vendor of stolen credit cards, with $358 million in purchases made through the market since 2013 using cryptocurrencies, according to a blockchain forensics firm.

There was an estimated $80 billion of fraud in the Economic Injury Disaster Loan program, which the Small Business Administration managed on its own. Republicans argue that's evidence the agency is unsuited to make direct loans, as the White House wants it to do.

Cryptocurrency kiosks are increasingly suspected of being used in the smuggling of human beings and drugs. Law enforcement agencies need more information about their locations, according to a government watchdog report.

The payout will help the Delaware bank recover legal costs that stemmed from its 2010 purchase of Christiana Bank & Trust. It expects a 23-cent boost to earnings per share in the most recently completed quarter.

Two co-founders of the company are expected to give depositions this month in a suit brought by an entrepreneur who says one of them stole her idea of providing credit to immigrants and turned it into a multimillion-dollar venture. Petal denies the allegations.

Morgan Stanley agreed to pay $60 million to settle a class action suit by consumers claiming the firm failed to safeguard their personal information.

Shares of Medallion Financial plunged Wednesday after U.S. regulators accused the New York-based lender to taxi drivers of seeking to illegally boost its stock price amid intense competition from Uber Technologies and Lyft. 

Germany’s finance watchdog fined Deutsche Bank 8.66 million euros ($9.8 million) over its handling of submissions for Euribor, a reference rate at the heart of a scandal that rocked the industry.